PFS to sell two stressed assets to ARC; focus on road, transmission, ports Noor Arora
PTC India Financial Services (PFS), the lending arm of Power Trading Corporation, plans to give away two of its accounts to an asset restructuring company. With the current stress in power generation sector, PFS has about 18 per cent of its Rs 134 billion loan portfolio in distress. Not all of these are, however, in the non-performing asset (NPA) category. The company has Rs 10.26 billion loan as third stage accounts corresponding to NPA for which it has made provision of Rs 5 billion. This is 7.68 per cent of loan portfolio as on June 30, 2018 on gross basis and 3.92 per cent on net basis after making about 50 per cent provisioning on expected credit loss basis. With effect from April 1, 2018 the loan account classification for the company is being made according to Ind-AS requirements. “We have made higher provision than the Reserve Bank of India requirement since our provisioning complies with IND-AS,� Ashok Haldia, managing director and chief executive, PFS, told Business Standard in an interview.
ARTICLE SOURCE: BS